*** F7 June 2016 Exam was.. Instant Poll and comments ***

@accastudent1986 said:
I think it ended up as 8600-1500 as 1500 of the loss occurred post-aquisition

So, 7100 as pre acquisition? In retained earnings you have 5600 as closing figure, then 5600-7100 as adjustment, right?

Yeah, i made research, actually the one with 45% and others 1% guves control

@christa316 said:
Right and isnt th markup of 35% on the cost the profit element and thus the unrealised gain?

It is, deduct from parent retained earnings

@april04 said:
Looks like I did it all wrong.
Q1 I deducted 1200 of deferred tax from Net assets of subsidiary this is why I got wrong -2200. I didn’t get negative goodwill though.
I thought question 2 was very badly worded. I read it 3 times and I thought it sounded a bit odd that they want ratios as it continued but yet then to comment on HFS…. to be able to comment on it and compare I would think both before and after ratios should be requested.
Question 3 I fond ok. However, I am not sure if I can say it as I did not manage to complete it. All I managed to calculate few things like contract, loan, assets and input few numbers. Not even everything because I run out time. So I have never managed to get what they asked for.
MCQ – I didn’t find them easy, mainly because there is lots of calculation and as someone mentioned before few obvious no and then very similar answers that is difficult to say which one is right. To add time pressure and

I didn’t find the exam easy at all. I would manage to complete it if I had extra 30 mins.

What was your contract working and contract asset?

@christa316 said:
Ok show your entire calculation to see if we are on the same page

Correct me if I am wrong but the question went something like this

So it said that the Parent sold some stuff to the Sub at a mark up of 35% to cost.

They then said that cost to the “parent” I guess was 2.43m

so I calculated it like this

Cost + Profit = Total Cost

The markup on cost which is equal to the profit element = 35% + 2.43m = 850,500 (that was my unrealised profit)

I think I misread the question. Since if the cost they had listed was actually to the sub then it it would have been (35/135) * 2.43m = 630,000

Which IMO would make more sense which would then account for my difference.

Christa, what u had to do is just 2.43*35/135 and then subtract from parent retained earnings as PUP, thats it 🙂 it seems u got it right

@christa316 said:
I got a profit of 3750

So It was the cost Incurred (which I can not remember)

The profit = Due from customer

Less the amounts the client paid.

I then recorded that as the contract asset. I did not add it to the 5000 that was there

Costs incurred so far were15, u should have added progit to 15 and then substract invoices, but thry difnt give invoice, thats wee i stuck. They said client paid 10, so i assumed it to be invoce

@christa316 said:
no got it wrong… based on what you are saying the cost that was on the paper was showing the cost to the sub and not to the parent..

So you answer was 630,000 im assuming

Mine was 850,500 because I thought the amount of 2.43 was cost to the parent… which meant that I did not have to calculate the profit element. Which means I deducted too much from inventory and deducted too much from retained earnings

What did you get for your convertible. I got 2340

Because the paren supplied the goods and they remained in subsidiary inventory, you have pup attributable to parent and calculate accordingly.

Dont remember exactly the loan, but it was pretty straighforward

sorry assset

you can have ownership by 50% plus shareholdings

But there are other things to suggest power

there was 1 with only 45% but he was able to govern the policies of the entity.
That is therefore a sub to him too even though he onlt had 45%

@christa316 said:
you can have ownership by 50% plus shareholdings

But there are other things to suggest power

there was 1 with only 45% but he was able to govern the policies of the entity.
That is therefore a sub to him too even though he onlt had 45%

There was also the one with 45 and others 1, also control

@christa316 said:
yes please I am

Lol. I think i have seen one of your videos, accidentally

Was hard and I also got negative goodwill 🙂